We target product candidates for which human proof of concept exists in the intended indication, for either the target or the compound, and for which biomarkers are available to guide development. We target conditions where we believe current treatments fail to address medical needs, and where we can apply clinical strategies to increase signal detection. Successfully in-licensing product candidates that meet these criteria is critical to our success.
In August 2017, we sold to Janssen Pharmaceuticals, Inc. ("Janssen") full rights to CERC-501 for initial gross proceeds of $25 million, of which $3.75 million was deposited into a 12-month escrow to secure future indemnification obligations to Janssen, as well as a potential future $20 million regulatory milestone payment. Under the terms of the agreement, Janssen will assume the ongoing clinical trials and be responsible for any new development and commercialization of CERC-501.
In September 2016, we entered into an exclusive worldwide license agreement with Lilly pursuant to which Lilly granted us rights relating to CERC-611, a potent and selective Transmembrane AMPA Receptor Regulatory Protein (TARP)-γ8-dependent AMPA receptor antagonist, and, any product containing CERC-611 for the prevention, diagnosis and/or treatment of human diseases. Under the terms of the agreement, Cerecor assumed full development and commercialization responsibilities of CERC-611. Lilly will receive an upfront licensing fee as well as milestone and tiered royalty payments on net sales.
In April 2013, we entered into an exclusive worldwide license agreement with Merck to develop and commercialize CERC-301, an oral, NR2B specific NMDA receptor antagonist, for the prevention, diagnosis and/or treatment of human diseases. Under the terms of the agreement, Cerecor will be responsible for development and commercialization of CERC-301 and/or any product containing CERC-301. Merck will receive and upfront payment plus certain milestone payments and a percentage of net sales.
In March 2013, Cerecor entered into an exclusive worldwide license agreement with Merck pursuant to which Merck granted Cerecor rights to small molecule compounds known to inhibit COMT as its primary mechanism of action and any pharmaceutical product containing such compounds for the prevention, diagnosis and/or treatment of human diseases. Under the terms of the agreement, Merck is to receive an upfront licensing fee as well as milestones and tiered royalty payments. Cerecor assumes all responsibilities associated with development and commercialization of said compounds and/or products.